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Motorcycle trade insurance – A comprehensive guide
As a motorcycle dealer, you deal with a lot of high-priced bikes that need to be insured against things like crashes, theft, and vandalism. Protecting your business’s physical location as well as its equipment, supplies, and money is essential if you run your operations from a physical location.
Those who work in the motorcycle industry can benefit from motorcycle trade insurance. Motorcycle trade insurance is generally highly tailored to the exceptional needs of each business. Accordingly, the type of insurance you need may vary from that needed by, say, car dealership insurance.
What is motorcycle trade insurance?
Insurance for those engaged in the business of purchasing and selling vehicles or repairing and servicing vehicles is known as “motorcycle trade insurance” or “trader’s insurance.”
There is specialized insurance available to those who make a living in the motor industry. Motorcycle traders’ insurance can protect a variety of situations not often covered by individual vehicle coverage. Driving customers’ vehicles and dealing with the general public are two such scenarios.
Vehicle recovery agents, valets, mechanics, and traders can all benefit from motorcycle trade cover since it allows them to legally clean automobiles, transport unlicensed vehicles on trade plates, and test drive vehicles on public roads.
Do I need it?
Some forms of commercial insurance may be mandated by law if you run a certain kind of motorcycle business.
If you have employees, you must have insurance that protects you from claims made by them. If you or your employees will be riding clients’ motorcycles, you must have road risk insurance. This is required by law once again.
Some forms of insurance coverage are obligatory, while others are only helpful safety nets in the event of an emergency, such as a fire, theft, or natural disaster. Having sufficient insurance gives you confidence that your company will be helped to recover fast in the event of a loss.
The necessary amount of protection for your motorcycle business will vary from company to company. Protection levels range from the bare minimum to full coverage, depending on your needs. Typical policies comprise:
- Road Risk – This covers you for driving your own and other people’s vehicles on the road as part of your regular business activities, despite the inherent dangers involved in doing so.
- Public Liability – If a customer has an injury or their property is harmed while on your premises, you will be covered by public liability insurance.
- Material Damage – This insurance can protect you in the event of an accident that causes harm to your inventory, like a motorcycle dealer’s unsold stock.
- Business Premises – If you conduct business out of a storefront, warehouse, or other permanent structure, you may need property insurance. If you are renting a building, you should inquire as to whether or not the landlord carries building insurance.
- Comprehensive Insurance – The highest level of protection, including coverage for your building, inventory, and equipment. Many comprehensive insurance also cover lawsuits involving public and employer liability.
Combined Motor Trade Insurance
Money, vehicles, liabilities, premises, tools, and goods are all protected under a combined motor trade insurance policy. Insurance of this type is meant to cover the full operation of a motorcycle dealer. Vehicle dealers can use this strategy to protect their operations at both their stores and their homes.
A motorcycle trader insurance policy is mandatory for any individual or business involved in the buying, selling, or servicing of motor vehicles. They should just pick a policy that works for them and lets them run their operations with as little danger as possible. Depending on the type and level of coverage desired, plans for the motor trade can range in price from quite affordable to excessively pricey.
It is ultimately up to the individual auto dealer to choose the extent of coverage they need; however, it can be helpful to consult with an expert in the field for guidance on this matter.
How does motorcycle trade insurance work?
Traders’ insurance is distinct from private car insurance in several key respects. Standard car insurance policies insure either one vehicle or one vehicle and one or more named drivers. You can purchase a policy that covers more than one motorcycle, but you’ll have to name the vehicles and pay an extra fee if you want to switch vehicles in the middle of the policy’s term.
Driving various customer vehicles is a common part of working in the motor industry. You could be using vehicles purchased with the intent of reselling them at a profit. Vehicles are likely to be switched out frequently, making individual auto insurance inadequate.
If you are unable to operate your covered vehicle, certain private car policies will allow you to drive another vehicle. Most of the time, this type of insurance only covers the other party, so if something happens to your vehicle you won’t be compensated.
Depending on what you’re looking for, various levels of protection are offered. Road risk insurance, along with public and employer liability, is a must-have for every professional trader. A motorcycle trade policy can be customized to include any additional coverage you require.
Budget-friendly motorcycle trade policy
Your motorbike business’s needs are unique, thus the cost of your motor trade coverage may vary from that of another bike business. This makes it challenging to provide an average cost, though, as with other insurance policies, there are ways to reduce your fairly universal costs. Rates can be lowered by doing the following:
- Instead of setting up a monthly payment plan, you’ve decided to pay a single, annual premium for your motorbike trade insurance. This prevents your payments from ever being late and eliminates the possibility of any penalties.
- Estimating the value of the stock and property you wish to insure as precisely as possible. You could end yourself paying more than you need to for insurance if you provide false information.
- Training your employees well and installing cutting-edge security measures like alarms and CCTV will go a long way toward protecting your company’s assets. You can lessen the likelihood of a break-in if you give security a high priority. Besides the obvious advantages, your insurer will see you as less of a risk. Insurance companies will charge less if they believe your property is less likely to be broken into or vandalized.